Cases of tax refund for imported and exported goods in Vietnam

Cases of tax refund for imported and exported goods in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Cases of tax refund for imported and exported goods in Vietnam

According to Article 19 of the Law on Export and import duties 2016 stipulates the following cases of tax refund for imported and exported goods:

(i) Any taxpayer who has paid export duty or import duty but has no exports or imports, or the quantity of exports or imports is smaller than the quantity on which duty is paid;

(ii) Any taxpayer who has paid export duty but the exports has to be re-imported shall receive a refund of export duty and does not have to pay import duty;

(iii) Any taxpayer who has paid import duty but the imports has to be re-exported shall receive a refund of import duty and does not have to pay export duty;

(iv) Any taxpayer who has paid tax on goods imported to serve manufacture or business operation and they have been used for manufacture of exports and the products are already exported;

(v) Any taxpayer who has paid tax on machinery, equipment, tools, vehicles of organizations and individuals that are permitted to be temporarily imported for re-export, except for those rented to execute investment projects, construction and installation, manufacture, when they are re-exported to abroad or exported to a free trade zone.

The amount of import duty refunded depends on the remaining value of goods when they are re-exported according to the period of time over which they are used or stay in Vietnam. If the goods are no longer usable, import duty shall not be refunded.

Tax shall not be refunded if the refundable amount is below the minimum level specified by the Government.

Note: Tax on the goods specified in (i), (ii), (iii) shall be refunded if such goods have not been used or undergone working or processing.

2. What are Paid duties for exported goods that have to re-imported in Vietnam?

Paid duties on the following exports that have to re-imported shall be refunded and import duties thereon shall be exempt:

(i) Goods that have been exported but have to be re-imported into Vietnam;

(ii) Goods that are sent by an organization or individual in Vietnam to an overseas organization or individual by international postal service or express delivery service, duties on which have been paid but delivery is failed and the goods have to be re-imported.

The taxpayer shall provide truthful information about the exported goods, the number and date of the sale contract (if any) and the buyer’s name on the import declaration.

The customs authority shall verify information provided by the taxpayer and specify the result to serve the refund of duties.

(Clause 1, Article 33 of Decree 134/2016/ND-CP)

3. Application for export and import duty refund in Vietnam

 An application for duty refund consists of:

- Form 09 in Appendix VII enclosed with Decree 134/2016/ND-CP;

- 01 photocopy of the document proving payment for the exports or imports (if paid);

- 01 photocopy of the export/import contract and invoices enclosed therein or the export/import mandate contract, as the case may be;

- If goods have to be re-imported because it is rejected by the foreign buyer or there is no recipient as notified by the shipping company, 01 photocopy of the foreign buyer’s notice or agreement with the foreign buyer on the return of goods or the shipping company’s notice of failed delivery which provides explanation and specifies the quantities and categories of the goods returned.

In case of a force majeure event or the taxpayer re-imports goods because of some errors, such document may be omitted. However, the reasons for re-import must be specified in the request for duty refund;

- In case of exports or imports mentioned in (ii) of Section 2, 01 photocopy of the notice of failed delivery issued by the postal service provider or international express delivery service provider.

(Clause 2, Article 33 of Decree 134/2016/ND-CP (amended in Decree 18/2021/ND-CP))

Nguyen Ngoc Que Anh

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